Finding Text
2023-004 - ACTIVITIES ALLOWED OR UNALLOWED / ALLOWABLE COSTS/COST PRINCIPLES
Type: Significant Deficiency in Internal Control / Non-compliance
Program: ALN 84.425 Education Stabilization Fund, COVID-19 - ESSER II - Formula
Criteria: As detailed in 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits.
Condition: During testing of grant disbursements, it was noted that a charge for a sound system was not authorized by the grant. The total amount charged to the grant for this purchase was $20,050.
Cause/Effect: This condition appears to be the result of a misunderstanding of costs allowed under this grant. These costs were not in compliance with 2 CFR 200.402.
Recommendation: We recommend that the District review all grant agreements to gain a thorough understanding of allowable costs and then establish/modify internal controls to assure that only allowable costs are charged to the grant.
View of Responsible
Official: Management is in agreement with this recommendation